NAIROBI, June 18 (Xinhua) -- A newly published study by the World Bank said
Kenya is partly responsible for high food prices in landlocked countries like
Uganda, that depend on Mombasa port to import goods.
The study, which published in the local daily the Standard on Wednesday,
said Uganda is likely to suffer higher food prices due to lengthy cross-border
crossing at Busia and Malaba in Western Kenya.
"Goods bound for Uganda, Rwanda, and Burundi spend an average of five days
more -- 25 versus 20 days -- in Tanzania's Dar Es Salaam port than domestically
bound goods," said the report.
"The same is true for goods shipped through Mombasa, Kenya. It usually
takes more than 24 hours to cross the Kenya-Uganda border."
The World Trade Indicators 2008 study report released by the World Bank
Institute this week said goods to Great Lakes Region from the ports of
Dar-es-Salaam and Mombasa took unnecessarily long time.
The bank said shipping costs are also a key component of food prices, and
are generally far higher for many low-income countries than for industrialized
countries.
A paper on rising food prices released during the IMF-World Bank annual
meetings earlier this month said trucking operators in oil-importing land locked
countries were paying as much as 50 percent more for fuel than in other
countries of the region even before the recent oil price jumps.
"Delays increase costs and the uncertainty of delivery, and that's as big a
problem as a lengthy transport process," said the report.
It says other factors such as cartels in the trucking industry in both
landlocked and coastal countries and also bribe-taking drive up the costs.
The business community in East Africa has often complained of numerous
police checks along the Northern Corridor between Mombasa and Busia.
However, the World Bank said that most developing countries continued to
improve trade policies supporting greater integration last year.
It said countries with lower barriers tended to have stronger, more
consistent trade and export performance over the past decade.
"The ranking shows that those countries that have reduced their trade
barriers, and are doing well on trade facilitation and institutions, have also
experienced sustained increases in their volume of trade," said Roumeen Islam, a
manager at the World Bank Institute.